* Thai baht loses as much as 0.3% * Indonesian rupiah hits lowest level since April 30 * Seoul shares fall 0.8%, Taiwan down 0.6% By Himanshi Akhand Sept 24 (Reuters) – The Indonesian rupiah languished near a five-month low and the Thai baht hit a more than one-week low on Wednesday, as emerging Asian currencies struggled against a stronger dollar as traders assessed the Fed chief’s cautious remarks on further easing. The baht fell 0.3% to a more than one-week low of 31.95 per dollar. Its rise to a four-year high earlier this month was seen as a threat to exports and tourism, prompting the government to set up a team to address the appreciation and trace unidentified capital flows. Lloyd Chan, a senior currency analyst with MUFG, however, expects the currency to trade in the range of 32.00–32.50 in the fourth quarter, due to Thailand’s strong external buffers and a broadly weaker dollar. Other currencies in the region also fell on the day as the dollar index, which measures the currency against six major rivals, rose 0.1%. Markets are pricing in quarter-point rate cuts at each of the remaining two Federal Reserve policy meetings this year, even after Chair Jerome Powell struck a cautious tone overnight on further rate cuts. The Philippine peso fell as much as 0.4% to a three-week low. The Indonesian rupiah weakened as much as 0.2% to its lowest level since April 30, before trading flat. Indonesia’s parliament on Tuesday approved President Prabowo Subianto’s budget proposal for 2026, which includes a fiscal deficit below legal limit and increased spending. Prabowo’s growth plans have sparked worries about compromised fiscal credibility, a weaker current account balance, and higher inflation. “Markets are pricing in a higher risk premium on the rupiah, reflecting Indonesia’s deteriorating balance of payments and fiscal concerns,” MUFG’s Chan said in a note. “With USDIDR breaching the 16,500 level and market sentiment remaining fragile, the pair could consolidate above our initial year-end forecast of 16,400 in Q4, unless there is a meaningful shift in policy clarity.” The Indian rupee was up 0.1% after touching a lifetime low in the previous session. Traders said the Reserve Bank of India likely stepped in the non-deliverable forward market before the local open to support the currency as it faces pressure from a proposed U.S. visa fee hike. Asian stock markets also fell, tracking declines on Wall Street overnight. Meanwhile, Super Typhoon Ragasa, the world’s most powerful tropical cyclone this year, lashed Hong Kong with hurricane-force winds, while heavy downpours in Taiwan resulted in the deaths of 14 people. Taiwan stocks fell 0.6%, coming off a record high touched in the previous session. Equities in South Korea fell 0.8%, while those in Singapore and India lost 0.2% and 0.4%, respectively. HIGHLIGHTS: ** Indonesia raises $1.98 billion from regular bond auction ** New Thai government aims to present key policy statement before Sept 30, official says ** Monetary policy easing should help South Korea’s economic growth, IMF says Asia stock indexes and currencies at 0432 GMT COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCK STOCKS % S YTD % DAILY % Japan -0.22 +6.24 -0.10 13.92 China India +0.06 -3.48 -0.41 6.01 Indonesi +0.00 -3.42 -0.09 14.66 a Malaysia -0.05 +6.43 -0.13 -2.49 Philippi -0.12 +1.32 -0.12 -6.40 nes S.Korea Singapor -0.09 +6.34 -0.23 13.34 e Taiwan -0.11 +8.10 -0.55 13.32 Thailand -0.28 +7.39 -0.01 -9.08 (Reporting by Himanshi Akhand in Bengaluru; Editing by Subhranshu Sahu)
